83(b) election

An IRS election to tax restricted stock at grant, rare for RSUs; timing matters for options.

Also called: 83(b), section 83(b) election

A Section lets you include the value of restricted stock in income when you receive it, instead of when it vests.

You must file the election with the IRS within 30 days of receiving the stock. Missing the deadline usually cannot be fixed.

generally are not eligible for 83(b) because they are not stock at grant. The election more often applies to early-exercised options or restricted stock awards.

Related terms

Educational definition only. Your grant documents, employer payroll, and tax forms control your situation.